Obinna Odogwu, Awka
Anambra State has proposed a downward review of its 2020 budget from N137.1 billion to N112.8 billion. The N24.3 billion reduction in the budget size represents 18 per cent from the original amount.
Commissioner for Economic Planning, Budget and Development Partners in the state, Mr. Mark Okoye, disclosed this during a virtual session attended by the officials of the state budget team, representatives from the Civil Society Organizations [CSO], Manufacturers Association of Nigeria [MAN], traders association in the state, and Budgit officials, among others.
Okoye said that with the fall in crude oil prices, which had effects on statutory and value added tax revenues, drop in internally generated revenue [IGR] and other capital receipts, the review became necessary to reflect the current economic realities.
He said that the COVID-19 pandemic has affected not just the country’s economy but that of the world at large thereby making it necessary that the federal and state governments should consider reviewing their 2020 budgets to reflect the present economic realities.
The commissioner, in an elaborate presentation, said the state budget for 2020, all things being equal, would be revised to N112.8 billion from the earlier approved budget of N137.1 billion. The reduction in the budget size which gives N24.3 billion represents 18 percent decrease from the original amount.
Further breakdown shows that the recurrent expenditure would decline by 18.9 per cent from the initial N58.8 billion to N47.7 billion, while total capital expenditure was reduced by 16.9 per cent from N78.4 billion to N65.1 billion. The budgets of critical sectors such as health, water and sanitation, according to Okoye, would not be touched to ensure that there is a buffer to contain COVID-19 outbreaks and associated social and economic fall-outs.
The commissioner further said that the revised total revenue represents a drop of 29 per cent from the projected N158.6 billion to N112.8 billion, outlining factors that necessitated the review to include fall in crude oil prices with effects on statutory and value added tax revenues, drop in internally generated revenue [IGR] and other capital receipts.